 | ||
The State Income Tax Repeal, also known as Massachusetts Question 1, was one of the 2008 ballot measures that appeared on the November 4, 2008 ballot in the U.S. state of Massachusetts. Voters were asked whether or not they approved of the proposed measure which, if it had passed, would have ended the 5.3% income tax in Massachusetts on wages, interest, dividends and capital gains. Ultimately, Massachusetts voters defeated Question 1 by a wide margin, with approximately 70% opposed versus 30% in favor.
Contents
- Specific provisions
- Supporters of the income tax repeal
- Arguments that were presented in support of Question 1
- Funding
- Earlier attempt to repeal income tax
- Individual Support
- Editorial Support
- Individual opponents
- Organizations against the measure
- Editorial opposition
- Arguments that were presented against Question 1
- History of petition drive and blocking allegations
- Additional reading
- References
Specific provisions
This proposed law would have had the following features:
Supporters of the income tax repeal
The official proponent of the measure was the Committee for Small Government. Michael Cloud and Carla Howell led the committee.
Initiative supporter Michael Cloud believed that the measure would lower the budget from about $28 billion to $17 billion, which is approximately the size of the 1995 state budget.
Polling showed that 46 percent of those asked supported the measure before hearing any of its details, and 40 percent still supported it after hearing about the measure in depth.
Arguments that were presented in support of Question 1
Funding
According to campaign finance reports, as of November 1, 2008 the Committee for Small Government had raised approximately $385,000 since creation and had $14,131.72 cash left. They also had about $80,000 in outstanding liabilities.
As of August 15, 2008, Ms Howell and Mr Cloud had paid themselves almost $200,000 from committee donations for "consulting fees" over the previous 6 years for services rendered to their own campaigns while soliciting donors for additional contributions because the campaign was out of funds.
Earlier attempt to repeal income tax
The Committee for Small Government advanced a similar initiative, called the Massachusetts End the Income Tax initiative, in 2002. That measure did not pass and received 885,683 votes, or 45.3 percent.
Individual Support
The Republican senatorial candidate, Jeff Beatty, said that he supported Question 1 while challenging incumbent-John Kerry.
Editorial Support
Stephen Moore of the Wall Street Journal stated: “The forces of the tax-and-spend status quo will descend on this initiative like British troops after the original Boston tea party, but somebody has to make an effort to stop the relentless growth of government.”
Steve Forbes of Forbes magazine stated: “This is an attack on political establishments there and throughout the U.S. that routinely put their own interests above those of their constituents: lavish government pensions with payouts that would bankrupt private companies; resistance to genuine reform in Medicaid spending, which has become the biggest item on virtually every state's budget; ever more pork-barrel spending; and ever more obsequiousness to rapacious special interests. Bay State voters – go for Proposition 1.”
Funding
According to campaign finance reports, as of October 15, 2008 the Coalition for Our Communities, the organization opposing this tax cut, had raised over $5 million—99.8% from teachers' and other government sector unions.
Individual opponents
Michael Widmer, president of the Massachusetts Taxpayers Foundation,
Gov. Deval Patrick
The Selectman in the town of Wayland voted unanimously to oppose the initiative.
State Rep. Tom Conroy, D-Wayland
Senator John Kerry (D-MA) publicly opposed it while running for reelection for senate.
Republican State Senator and future U.S. senator Scott Brown voted against Question 1 despite voting against raising the state's flat tax to 5.95% while in the state senate in 2003.
Organizations against the measure
Coalition for Our Communities, an organization created by the Massachusetts AFL-CIO that reportedly had $1.34 million with which to mount an effort to defeat the measure. The Coalition's funds are derived mainly from unions, including $750,000 from the National Education Association. The group also received $250,000 from American Federation of Teachers Solidarity Fund. Both the NEA and the AFTSF are based in Washington, D.C.
Editorial opposition
The Boston Globe officially asked voters to vote "no" on Question 1.
Arguments that were presented against Question 1
Funding
According to campaign finance reports, as of November 1, 2008 The Coalition for Our Communities had raised approximately $6,625,000 since creation and had $117,270.95 cash left. They also received about an additional $650,000 in inkind donations from unions such as donated staff, supplies, postage etc.
History of petition drive and blocking allegations
The proponents submitted about 100,000 signatures to the Massachusetts Secretary of State for the first phase of signature collection. 76,084 of those signatures were determined to be valid, with a requirement that 66,593 must be valid for the initiative to proceed to the next step. The next step was for the Massachusetts State Legislature to take up the measure. They declined to pass it by the first Wednesday in May 2008, meaning that the proponents had to collect an additional 11,099 valid signatures by June 18, 2008. On July 3, it was announced that 15,913 additional certified signatures had been filed, making the measure extremely likely to appear on the ballot.
The Massachusetts Teachers Association, whose mailing address is the same as the "Committee for our Communities", admitted in December 2007 that it had made phone calls to people who had signed the petition to place the income tax repeal on the ballot, inquiring about whether their signatures were valid. The calls were made from a group identifying itself as the "Committee for our Communities".